Ann: Appendix 4C - quarterly, page-38

They've been wrong about the CFN prediction enough times before and I'm not sure we can count on them achieving this CN prediction either, it doesn't appear that they are controlling their costs effectively enough. If they are approaching 40% gross profit margins then there is no sign of it in the cash flow accounts -

last 4c we had receipts 5,311 to product manufacturing of (5,285).
This 4c the cost growth has outstripped the growth in receipts 6,471 to (8,774).

Even if we allow for an expansion of accounts receivable of $2mil (generous as its a full 1 months worth of regular sales) to add onto receipts, going up to 8,471 there is still no sign of improving gross profit margin in these figures. The other expense groups are growing as well. So I believe the need for additional funding is going to be real. Whether that is via CR or another trip to the banks we couldn't say at this stage though.

I can't see the SP reacting positively in the near future to anything other than the next big sales announcement. Hopefully not too far away.